Writing Off Uncollectible Accounts and Adjusting the Allowance for Uncollectible Accounts

Apuntes

• Writing Off and Collecting Uncollectible Accounts Receivable **LO4:** Write off an uncollectible account receivable. **LO5:** Account for the collection of an account receivable that was written off. **Journalizing the Writing Off of an Uncollectible Account Receivable (LO4)** | Account Title | Memorandum Number | Debit Amount | |----------------|-------------------|--------------| | GENERAL JOURNAL | PAGE 16 | | | DATE | ACCOUNT TITLE | DOC. NO. | POST. REF. | DEBIT | CREDIT | |-------|------------------|----------|------------|--------|--------| | Jan. 25 | Allowance for Uncollectible Accounts | M58 | 639.88 | | | | Accounts Receivable/Edmonds Hospital | | | | 639.88 | When a customer account is determined to be uncollectible, a journal entry is made to cancel the uncollectible account. This entry removes the uncollectible amount from Accounts Receivable in the general ledger as well as from the customer account in the accounts receivable ledger. Canceling the balance of a customer account because the customer does not pay is called writing off an account. A customer should not be told that its account has been written off. A business should continue its efforts to collect the ...